An ideal word that comes to mind when describing blockchain technology is "decentralization". The idea represents a network without a central governing body. The network works through peer-to-peer interactions without the need for any third parties.
To gain a deep understanding of what decentralization is in the context of blockchain, we need to look at centralization.
Definition of Decentralization and Centralization
According to Wikipedia, decentralization is "the process by which the activities of an organization, especially those concerning planning and decision-making, are distributed or delegated outside a central, authoritative position or group".
A decentralized setup has multiple points of action, whereas a centralized setup has only one focal point.
In a centralized network, all data and activities go through a central hub. Nothing can be deployed or received without going through this center.
Facebook and Google are two specific examples of centralized platforms.
In a decentralized web, information and activities interact through multiple interconnected points. LimeWire and BitTorrent are great examples of decentralized platforms.
The meaning of decentralization
How important is decentralization? Why do companies and individuals want to pursue it?
There are many reasons for the need for a decentralized solution. There are also many ways to create a decentralized platform. The blockchains used to host some other services, such as Ethereum and NEO, are also decentralized on the same platform.
Regardless of how it is designed, the main goal of decentralization is to give every user in the network an equal footing and complete protection from any internal or external influence.
When it comes to blockchain, one thing that comes to most people's minds is the physical decentralization, or rather the number of computers running in a corporate network.
Are there thousands of computers in the world running blockchain on their machines? Or just a few computers doing this?
If the network has more nodes, with greater geographic diversity, the blockchain will become more decentralized. However, district centralization involves not only the physical level, but also the political level.
A number of entities are involved in district centralization to make it work properly, such as the miners who process and verify all transactions that take place in the network. Every entity is important; therefore, it is difficult for one group to be more important than another, nor is it possible for the system to favor one of them.
The advantages of decentralization
1. No more central authority to control everything
Currently, governments and corporations handle all currency and information in circulation. This is usually not a problem, but in some cases these organizations have violated users' trust by selling valuable data to advertisers. Also, data sometimes goes to waste.
2. Reduce the risk of a single point of failure
A single point of failure during downtime can dramatically impact productivity. For example, when Google encounters technical difficulties, they have to shut down their servers and you cannot access emails or files on Google Drive for a certain period of time.
This usually happens in a centralized network. But in a decentralized platform, even if a single node shuts down, other nodes will not be affected and continue to execute. Therefore, it will not affect your productivity.
3. Reduce censorship
No matter how closely we are connected to the Internet and to each other, governments still have the power to block citizens' use of social media and control the use of other services. In a decentralized network, there is less censorship as data or information is sent and received through a peer-to-peer network.
4. Development is dynamic
Decentralized platforms are open source, and everyone has access to the code they can develop to make it better and more dynamic. Through this important collaboration, better tools and products are created, and there are excellent business opportunities for merchants.
Customized Reserch And Develop
A report on Lithium Iron Phosphate (LiFePO4) Battery Market has been added by Kenneth Research into its market research repository. The report provides an extensive analysis of the market by determining the relationship between the dependent and independent variables through correlation and regression for the forecast period, i.e., 2021 2025. The report on Lithium Iron Phosphate (LiFePO4) Battery Market further provides the supply and demand risks associated with the growth of the market, and consists of macro-economic indicators that are contributing to the market growth. The market is thriving on account of the growing trade on fuel worldwide, backed by the rising demand for energy from the end-users.
According to the statistics by the World Bank, exports of fuel increased from 12.91% of merchandise exports in 2001 to 14.25% of merchandise exports in 2018. Additionally, imports of fuel registered a growth by 1.28x between the years 2001 and 2018. In 2001, the import of fuel was 10.30% of merchandise exports whereas in 2018, it was 13.19% of merchandise exports. On the other hand, the increasing focus of the players in the energy and power industry to lower their cost of operations so as to enhance their profitability, is also anticipated to contribute to the market growth. The natural gas rents, which is defined as the difference between the total cost of production of natural gas and the production value at world prices, decreased significantly from 0.40% of GDP in 2001 to 0.18% of GDP in 2017. Alternatively, the oil rents, which increased from 1.09% of GDP in 2001 to 1.30% of GDP in 2019, portrays the need amongst the players to enhance their focus in reducing the cost of production of oil.
Customized Reserch And Develop,Lithium Ion Battery,Lithium Car Battery,Lithium Ion Battery Price,Lithium Battery Price
Shenzhen Zhifu New Energy Co., Ltd. , https://www.sunbeambattery.com